Question

explain the components of government revenue and outlays

Answer 1

Payroll taxes as a whole are regressive: lower-income employees receive a higher percentage of their wages than the higher-income employees. When one looks at the cumulative effect of Social Security, Medicaid, and unemployment insurance, however, then the benefits they receive as well as the taxes they raise are substantial.

Corporate income taxes account for about 6 per cent of federal revenue, with the remaining 8 per cent coming from excise taxes , property taxes and other sources of income. Taxes on the selling of such products ( e.g., gasoline, alcohol , and tobacco) are collected; they are intended to raise revenue and, in certain cases, to prevent the use of the taxable commodity.

The Estate tax is a tax on properties that are passed from the deceased to their heirs, such as cash, real estate or stock. Since the first $22.4 million of a married couple 's estate was excluded from property tax in 2018, and due to other special exemptions from property tax, less than 1 out of 1,000 properties owed the property tax in 2018. The estate tax is the most equitable aspect of a tax code as it impacts only those who are most willing to pay.

Personal income taxes in 2014–15 were 0.8 per cent lower than in 2010–11, but are expected to rise by 2021–22 to near to their 2010–11 point. Around that point, the share of income tax revenues will be 0.6 per cent lower in national income and 0.4 per cent higher in NICs than in 2010–11. Political decisions since 2010 have helped to raise revenue along with substantial grants (most notably through higher personal allowance and higher-rate threshold increases) and takeaways (including decreased pension contributions relief, dividend tax increases and new apprenticeship levies).